U.S. oil prices slid toward $34 a barrel on Wednesday, extending Tuesday's nearly 7 percent losses on renewed economy concerns, slumping demand and bloated inventories. U.S. crude for March delivery fell 9 cents to $34.86 a barrel at 1005 GMT (5:05 a.m. EST), while London Brent crude for April delivery trimmed 1 cent to $41.02 a barrel. With March's contract to expire on Friday, the April contract's premium narrowed to around $3.60 on Wednesday versus nearly $8 last week, a sign traders believe swollen inventories in Cushing, Oklahoma, may persist. The U.S. Energy Information Administration will release its weekly inventory data report on Thursday, but a Reuters poll of analysts on Tuesday showed an average forecast for an increase of 2.6 million barrels, nearing an 11-year high. U.S. auto makers unveiled new survival plans seeking billions of dollars in extra government funds on Tuesday, drawing skeptical responses and investor doubts about a return to profitability. Analysts said the bailout request and Obama administration plans to help homeowners would weigh on crude on Wednesday. "We look for increased volatility in all markets during Wednesday's session...of the two, the focus will be more on Detroit," Edward Meir of MF Global wrote in a note. The news across Asia has been almost uniformly bad, with Japan, the world's second-largest economy, reeling from its worst downturn in a generation. The Nikkei stock average .N225 fell 1.5 percent to its lowest close in nearly four months. .T The financial crisis has left much of the world in recession and hammered oil consumption, pulling crude prices from record highs above $147 a barrel hit in July. Traders will also watch for data on U.S. housing starts and January industrial production, as well as the Redbook retail sales index for February to look for new indications on the health of the world's top economy.

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